The native Elrond eGold token is live, opening a new growth phase for the Elrond economy. It is a natural step toward enabling native Elrond services such as staking and delegation, and native DeFi options.

Just as there are huge implications in precise words and phrases because combined they reveal subtle and profound new meanings, so there are huge implications in precise, fine-tuned economic parameters because together they can evoke strong economic attraction forces, which can effectively reshape the global economy.

Overview of the most important eGold premises:

What is eGLD: Simplicity and global adoption
1. The eGold currency is designed for simplicity and global adoption

Complexity is the most important obstacle for real world adoption — try explaining Bitcoin or Ethereum to normal people and you immediately see what I mean. In order to reach the next billion people, we’ve completely rethought the Elrond currency, capturing its essence into a universally appealing and powerful metaphor.

What is eGLD: A sustainable adoption model robust store of value
2. The eGold currency is designed as a digital reserve standard and robust store of value

A new economics model has been defined to position eGold as the core network token, fundamental to all of Elrond’s internal usage. This token is designed to optimize parameters that lend themselves to creating a robust store of value, similar to gold, but with mechanics and functionality that go well beyond those of gold.

What is eGLD: Built-in scarcity
3. Built-in scarcity to reinforce value and demand

There are only 20Mil initial eGold at Genesis relative to 8 Bil people. This means there is a very limited supply of only 0.0025 eGold per person. This sets an arms race game of accumulation in motion, since owning a few thousand eGold now is like owning a few thousand Bitcoin in 2010.

What is eGLD: Strong staking incentive
4. Strong staking incentive for validator adoption paired with a max supply limit

There are strong staking incentives for validators to secure the Elrond network. At first, these staking incentives come from new supply issued yearly, but as adoption kicks in, inflation is substituted with transaction fees to cover the staking rewards. Furthermore, in contrast to most other blockchain networks where the new issuance is infinite and uncapped, in Elrond this sum is capped to a theoretical supply limit of 31,415,926 eGold which can be reached over 10 years.

What is eGLD: Adoption reduces
5. Adoption reduces this theoretical inflation and increases scarcity

One of the most powerful features of the Elrond economic model is that each transaction fee paid reduces the theoretical limit by substituting inflation with fees, thus making eGold more scarce, ensuring that the 31.4M max supply limit will never be reached.

What is eGLD: Digital reserve standard and robust store of value
6. A sustainable adoption model growing the entire eGold economy and reinforcing deflation

Elrond offers arguably one of the strongest adoption models in the blockchain space, thanks to the network being able to immediately transition to a fully deflationary model via any adoption scenario. Indeed, the zero inflation threshold visible in the image below shows that since below 10% of the network capability is needed to cross the threshold, with enough adoption Elrond can exceed this threshold and create a significant amount of value for all the network participants.

Would you like to read more about Elrond and eGLD then we would like to point you to the following links/ documents.

eGLD: A Powerful Digital Currency
Economics Paper